Sale and Leaseback- financing fit outs you have already paid for

Sale and leaseback is a great way for businesses to restore liquidity to their cash flow up to 6-months after the fit out has been completed.

We are often approached by businesses seeking to finance fit out projects which they have partially or fully paid for. Fortunately, our sale and lease back facility is well suited to help those in these situations.

Why do people use sale and leaseback?

There are multiple reasons as to why a sale and leaseback might suit a customer better than conventional financing.

Easing cash flow pressures

The most prevalent reason being that it isn’t uncommon for businesses to simply change their mind after paying outright for a fit out project in order to improve their cash flow. It is a great way to get an instant cash injection into your business!

Proceed with planned projects

No need to put plans on hold due to cash flow problems. Your reimbursed cash can go towards other areas of the business that might require immediate attention.

Multiple suppliers

Often when businesses has bought items from several suppliers it is deemed too tricky to arrange invoices to a finance company. Often each item is lower value, but each purchase accumulates into a hefty total sum.

Goods coming from abroad

Whilst it is possible to arrange conventional finance on imported goods, it can be more straight-forward to pay the supplier directly and recover the money through sale and leaseback.

Pre-payments and deposits

Although our standard finance options can cover pre-payments and stage payments, it is often easier to simply pay these in advance and finance the package by sale and leaseback.

What equipment can a sale and lease back cover?

We can cover most aspects of a fit out through sale and lease back. However, invoices for services are an exception to this. So, for example, painting and plumbing invoices can’t be reimbursed via sale and leaseback. But these can potentially be financed through an unsecured loan.

What is the criteria for arranging a sale and lease back?

The credit criteria is similar to those we go by for conventional asset finance. The key difference being that you will need to provide a clear paper trail and evidence of payment. But other than that, it is our usual straight forward process!

As ever, we are here to guide you through it! So, if you consider sale and leaseback to be a fitting form of finance for your business, please don’t hesitate to get in touch. Call us on 01494 422 614, alternatively, you can send an email to [email protected] outlining your needs and we would be happy to assist!